CBEC issues Clarification on Various issues relating to Service Tax VCES

Circular No.  170/5 /2013 - ST

Subject: The Service Tax Voluntary Compliance Encouragement Scheme - clarifications regarding.

             The Service Tax Voluntary Compliance Encouragement Scheme (VCES) has come into effect from 10.5.2013. Some of the issues raised with reference to the Scheme have been clarified by the Board vide circular No. 169/4/2013-ST, dated 13.5.2013.  Subsequently, references have been received by the Board seeking further clarifications as regards the scope and applicability of the Scheme.

Release of Excel Utility for Filing of Service Tax return of October 2012 to March 2013 - CBEC

The Offline Excel utility for filing half-yearly Service Tax Return (ST-3) for the period October 2012 to March 2013 is now available in the ACES website.

 

The online version of the same will be made available shortly. It is to be noted that the due date for filing the Return has already been announced to be 31st August 2013 vide Order No. 3/2013 - ST dated 23.04.2013.

Features of Service Tax Voluntary Compliance Encouragement Rules, 2013

Central Government vide Notification No. 10//2013-ST dated 13th May, 2013 has introduced “Service Tax Voluntary Compliance Encouragement Rules, 2013”.

The said notification consist the Rules regarding the form and manner of declaration, form and manner of acknowledgement of declaration, manner of payment of tax dues and form and manner of issuing acknowledgement of discharge of tax dues under the Service Tax Voluntary Compliance Encouragement Scheme, 2013.

CG amends the notification No.26/2012-Service Tax, dated the 20th June, 2012.

Notification

No.09/2013 - Service Tax

New Delhi, the 8th May, 2013

G.S.R....(E).– In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.26/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 468 (E), dated the 20th June, 2012, namely:-

Extension of due date of submission of Service Tax Return for October 2012 to March 2013

Recently Central Board of Excise and Custom vide Order No. 03/2013 dated 23.04.2013 has announced the last date of submission of Service Tax Return for the period October, 2012 to March, 2013 to be 31st August 2013.

Regarding exemption from Service Tax by CG under Vishesh Krishi and Gram Udyog Yojana (VKGUY)

[PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 08/ 2013 - Service Tax

New Delhi, dated the 18^th April, 2013  

            G.S.R..... (E). – In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act,1994 (32 of 1994)(hereinafter referred to as the said Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services provided or agreed to be provided against a scrip by a person located in the taxable territory, from the whole of the service tax leviable thereon under section 66B of the said Act.

Regarding exemption from Service Tax by CG under Focus Product Scheme (FPS)

[PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 07/ 2013 - Service Tax

New Delhi, dated the 18^th April, 2013  

                        G.S.R..... (E). In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994)(hereinafter referred to as the said Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services provided or agreed to be provided against a scrip by a person located in the taxable territory from the whole of the service tax leviable thereon under section 66B of the said Act.

CG exempts Service Tax against the Focus Market Scheme duty credit scrip issued to an exporter

[PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No.06 / 2013 - Service Tax

 New Delhi, dated the 18^th April, 2013  

                        G.S.R..... (E). In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services provided or agreed to be provided against a scrip by a person located in the taxable territory from the whole of the service tax leviable thereon under section 66B of the said Act.

Service Tax on service provided by way of erection of pandal or shamiana

Circular No.  168/3 /2013 - ST

F. No. 356/2/2013-TRU

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

Tax Research Unit

*****

Subject:  Tax on service provided by way of erection of pandal or shamiana - regarding.

            Several representations have been received seeking clarification on the levy of service tax on the activity of preparation of place for organizing event or function by way of erection/laying of pandal and shamiana. The doubt that has been raised is that this may be a transaction involving “transfer of right to use goods” and hence deemed sale.

CG amend the Service Tax Rules, 1994 by substituting the Form No. S.T.-5, S.T.-6 and S.T.-7

TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

NOTIFICATION

New Delhi, the 10th April, 2013

No.5 /2013-SERVICE TAX

G.S.R ……(E).- In exercise of the powers conferred by sub-section(1) read with sub-section (2) of section 94 of the Finance Act 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely:-

Due date notified for filing of Service Tax Return for Qtr-2 of FY 2012-13

TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY, PART II,   SECTION 3, SUB-SECTION (i)

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No.  01/2013-Service Tax

New Delhi, the  22nd February, 2013

 3 Phalguna, 1934 Saka

           

G.S.R (E).-In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 ( 32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994,  namely:-

1.        (1) These rules may be called the Service Tax ( Amendment) Rules, 2013.

           (2)  They shall come into force on the date of their publication in the Official Gazette.

CBEC detects Rs. 9,800 Crore Service Tax Evasion

The Central Board of Excise & Customs ( CBEC) has detected service tax evasion of Rs. 9,800 crore in the April- December period this year. It has warned evaders to pay the tax or face action. “CBEC would appeal to all service providers to comply with the law and pay service tax that is due. Failure to pay service tax will attract appropriate action under law including recovery of tax, interest and penalty. Prosecution and attachment of property are also envisaged in appropriate cases,” CBEC member (service tax) Lipika Majumdar Roy Choudhury said.

No Service tax on services by way of transportation of milk by rail/vessel

Representation has been received from the Indian Railways seeking clarification as to whether service by way of transportation of milk by rail is covered by Notification No.25/2012-ST dated 20.06.2012, serial number 20(i).

2.         The representation has been examined. The expression ‘foodstuff’ appearing in Notification No.25/2012-ST dated 20.06.2012, serial number 20(i) includes milk. Therefore, it is clarified that the service by way of transportation of milk by rail or a vessel from one place in India to another, is covered by the Notification No.25/2012-ST dated 20.06.2012.

No tax point arises on issuance of notices/ reminder letters issued for life insurance policies

It has been represented by life insurance companies that in terms of the practice followed, reminder notices/letters are being issued to the policy holders to pay renewal premiums. Such reminder notices only solicit furtherance of service which if accepted by policy holder by payment of premium results in a service.  Clarification has been desired whether service tax needs to be paid on the basis of such reminders.

Documents required for refund of Service Tax in respect of the services used in export

Documents required for refund of Service Tax in respect of the services used in export, as specified in Notification No.17/2009 – ST dated 07.07.2009 as amended by Notification No.40/2009 – ST dated 30.09.2009 are as follows:-

1. Refund application in Form A-1 as annexed to the said notification for an exporter who is registered under Central Excise Act, 1944.

CG exempts Life Insurance Business under JBY or AABY insurance scheme from Service Tax Ambit

G.S.R....(E)- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.25/2012-Service Tax, dated the 20^th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), number G.S.R. 467 (E), dated the 20^th June, 2012, namely:-

CG Exempts certain specified services provided by the Indian Railways

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India

Ministry of Finance

(Department of Revenue)

New Delhi, the 2^nd July, 2012

Notification No. 43/2012-Service Tax

            G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services of the description mentioned in the Table below, provided by the Indian Railways from the whole of service tax leviable thereon under section 66B of the said Act, with effect from the date of publication of this notification in the Official Gazette, upto and including the 30^th  day of September, 2012.

TABLE

Sl. No.	Description of taxable services
1.	Service of transportation of passengers, with or without accompanied belongings, by railways in -- (A)   first class; or (B)   an air conditioned coach
2.	Services by way of transportation of goods by railways

  [F. No. 334/1/2012-TRU]

   

(Vikas)

                                         Under Secretary to the Government of India

CG amends Notification No.25/2012-Service Tax by omitting word "Bovine" from entry no. 33

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India
Ministry of Finance 
(Department of Revenue)

Notification No. 44/2012 - Service Tax

New Delhi, the 7^th August, 2012

   G.S.R. (E)- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.25/2012-Service Tax, dated the 20^th June,2012,  published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),  vide number  G.S.R.  467 (E), dated the 20^th June, 2012, namely:-

CG amends Notification No.30/2012 thereby Company Liable to pay ST if Service provider is Director

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India
Ministry of Finance 
(Department of Revenue)

Notification No. 45/2012 - Service Tax

New Delhi, the 7^th August, 2012

G.S.R. (E).- In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.30/2012-Service Tax, dated the 20^th June,2012,  published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),  vide number  G.S.R.  472 (E), dated the 20^th June, 2012, namely:-

CG amends Service Tax Rules

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India
Ministry of Finance 
(Department of Revenue)

Notification No. 46/2012 - Service Tax

New Delhi, the 7^th August, 2012

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely:—

1.         (1) These rules may be called the Service Tax (Third Amendment) Rules, 2012.

            (2) They shall come into force on the date of their publication in the Official Gazette.

2.         In the Service Tax Rules, 1994, in rule 2, in sub-rule (1),-

(A)  in clause (d), in sub-clause (i),-

 (i)  after the item (E), the following item shall be inserted, namely;-

“(EE) in relation to service provided or agreed to be provided by a director of a company to the said company, the recipient of such service;”;

 (ii)  in the item (F), in the sub-item (b), after the words “manpower for any purpose”, the words “ or security services” shall be inserted.          

(B)   after clause (f), the following clause shall be inserted, namely:—

“(fa) “security services” means services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity;”

[F.No. 334 /01/2012- TRU]

(Raj Kumar Digvijay)

Under Secretary to the Government of India

Note.- The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 2/94-ST,dated the 28^th June, 1994 vide number G.S.R. 546(E), dated the 28^th June, 1994 and was last amended by notification No. 36/2012-Service Tax, dated the 20^th June, 2012 vide number G.S.R. 478 (E), dated the 20^th June, 2012.